He yield on US treasury bonds It falls in volatile trading on Wednesday, ahead of an auction of $38bn in 10-year notes that will test demand for the debt after a sharp rise in yields last week.
The yield of the 10-year paper falls 1 basis point, to 4.012%; that of the two-year debt also lost 1 basis point, to 4.751%; and that of the 30-year debt fell 2 basis points, to 4.187%.
The sale on Tuesday of 42,000 million dollars in three-year bonds was in strong demand. On Thursday, the Treasury will also auction $23 billion in 30-year notes.
Fed Monetary Policy: Is the end of its tightening cycle near?
Benchmark 10-year yields hit a nearly nine-month high on Fridayafter the Treasury raised its debt forecast for the next quarter earlier that week and announced an increase in the size of auctions across the board.
The week before, the bank of japan It also reported the start of a slow unwind from decades of massive monetary stimulus, adding to long-term concerns about demand from the growing US government debt burden.
However, as many investors are betting that the Federal Reserve is near or at the end of its tightening cycle, higher longer-term yields may help drive demand at auctions this week.
“I think people are looking at the support we had last week as a bit of a buying opportunity for the longer duration stuff this week,” he said. Thomas Simonsof jefferies In New York.
Simons noted that weaker Chinese economic data, expectations of softer US inflation and dovish comments from Fed officials are offsetting some of the long-term concerns about demand for US government bonds.
Source: Ambito
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